Hi Dear Mike
When parent disposal subsidiary , and there is NCI at acquisition measured at FV and there is impairment at disposal date, is NCI a bear by proportion from that impairment when NCI calculate at disposal to deduct from net asset plus g/w at disposal date .
for example : proceeds amount 4100, net assets at acqn 2350 net asset at disposal 3000,g/w at acqn 250 , impairment 60 at disposal date, NCI at acqn at FV 350 ,what gain on disposal is reported in the CSPL?
Ask the Tutor ACCA FR
Disposal Sub
What's our percentage holding?
parent 85%
So why didn't you tell me that originally?
:-(
This looks to me like:
Proceeds 4,100
Net assets at date of disposal 3,000
Percentage sold 85%
85% x 3,1000 = 2,550
Gain on disposal 550
Goodwill sold (250 - 60) 190
Group gain on disposal 360
OK?
I just forgot to mention the percentage initially sorry about that .
I still did not understand how you calculate the group gain , and where is NCI at disposal also why you multiplied 85%*3100 .
The proceeds of sale is the amount that the parent receives from selling its holding in the subsidiary
But the parent only owns 85% of the subsidiary shares so is only entitled to account for the sale of 85% of the subsidiary's net assets at date of disposal together with the whole of the impaired goodwill
NCI on disposal disappears - they still own their 15% of the subsidiary's shares and therefore also their interest in the subsidiary's net assets
OK?
Yes, thank you so much
You're welcome
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